ISLAMABAD:
The federal authorities has barred the present Board of Administrators (BoD) of Sui Southern Fuel Firm (SSGC) from appointing a brand new Managing Director or filling senior positions. The accountability for such appointments has been transferred to the incoming board.
In keeping with a letter out there with The Categorical Tribune, the Petroleum Division has instructed the corporate secretary to carry elections promptly for the formation of a brand new board of administrators.
The Petroleum Division said that the present BoD has already accomplished its time period, and vacant director seats stay unfilled. Consequently, it’s suggested that essential strategic selections affecting the corporate’s future be deferred to the brand new BoD. The letter underscores the necessity for continuity within the current administration, together with the incumbent managing director. Whereas the present board can provoke hiring processes, any new appointments or modifications at senior administration positions ought to solely be determined by the incoming board.
The elections for the BoD of SSGC have been initially scheduled for October 23, 2023 however have been postponed for six weeks on the recommendation of the Ministry of Vitality (Petroleum Division). Subsequently, the Board sought approval from SECP, extending the election date till December 4, 2023. Nonetheless, the elections weren’t held inside the stipulated time and have been postponed for the fourth time till March 4, 2024. The delay coincides with crucial challenges confronted by SSGC, together with a authorized dispute with Karachi industrialists over a gasoline worth improve introduced in November 2023.
The Petroleum Division expressed issues that this authorized problem may end in critical money movement points for SSGC, undermining the assembly of crucial income necessities dedicated underneath the Stand-By Settlement with the Worldwide Financial Fund. The corporate can be grappling with winter load administration points that demand fixed administration and skilled dealing with. Moreover, a gas-related income shortfall in Balochistan might additional impression income necessities. Provided that the present Board’s time period has already expired, the Petroleum Division burdened the urgency of holding elections.
Throughout the tenure of the Pakistan Democratic Motion authorities, names for the chairman and administrators of SSGC and SNGPL had been finalised. Nonetheless, the present board has repeatedly postponed the election of a brand new board since October 2022. Whereas the federal government appointed the chairman and administrators of the SNGPL board, the prevailing SSGC board managed to safe a fourth extension in its tenure moderately than conducting elections for a brand new BoD.
A spokesperson from the Petroleum Division, when contacted, said that extensions to the SSGC board have been granted as per the legislation by SECP. He talked about that the names for the brand new boards had been forwarded to the corporate, including that the tenure of the present managing director was set to run out in February, with the fourth extension within the SSGC board tenure expiring in March this 12 months.
Queries have been despatched to SECP, however the regulator didn’t reply.
Over the previous 4 years, SSGC, a state-owned entity, has confronted vital losses, with final 12 months’s losses reaching round 12 billion, erasing the organisation’s fairness, and inflicting SSGC shares to plunge to their lowest. Studies recommend that the Board has assumed the function of administration, leading to operational challenges.
Learn SSGC seeks hike amid Rs47b shortfall
The Board’s failures embrace the shortcoming to nominate a everlasting managing director for 2 years, resulting in a revolving door of three appearing managing administrators (DMDs). All candidates for MD, together with Taha Siddiqui (who was later employed by Pakistan State Oil, have been rejected by the Board. Imran Maniar, an abroad Pakistani, was employed as MD in 2021, however his powers have been curtailed by inserting the insurance policies and procedures of SSGC underneath evaluation, delaying all selections on promotions and placements.
Allegations of poor company governance led to the resignation of the previous firm secretary. As a substitute of hiring a brand new firm secretary, the Board continued with a junior officer of the board secretariat. With out due course of, he was appointed as firm secretary, promoted to DGM, and had his wage elevated from Rs375,000 to Rs1,400,000, elevating issues a few battle of curiosity as he was additionally given the cost of head of Human Assets.
Board members who raised issues have been reportedly shunned and coerced to resign. Nida Farid was the primary to resign, adopted by Faisal Bengali, who brazenly alleged that the chairperson tampered with the minutes. A favoured Board member, Sohail Razi Khan, is a candidate for the place of DMD, and his appointment is reportedly within the superior stage of approval.
When contacted, the chairperson of the SSGC board relating to the extensions, the corporate responded that elections are carried out based mostly on recommendation from the Ministry of Vitality (MOE), and all such extensions have been obtained by the corporate secretary as per MOE recommendation and allowed by SECP. Concerning the hiring of managing administrators, the corporate said that the hiring course of is carried out in accordance with established tips and frameworks (Public Sector Corporations (Appointment of Chief Government) Tips, 2015, Corporations Act, 2017, SOEs Act, 2023, SOEs Possession and Administration Coverage – 2023 and Company Governance Framework) prevalent within the nation. Nonetheless, throughout any interval between the hiring of a everlasting MD and the outgoing MD, the place is briefly stuffed by one of many DMDs.
Concerning the curtailment of powers of the present managing director and the intervention of the board, the corporate said that the Board initiated HR reforms effectively earlier than the becoming a member of of the present MD, and over time, a brand new HR Handbook was developed and put in force. The BOD is a strategic and policy-making physique that takes coverage selections.
Printed in The Categorical Tribune, January 16th, 2024.
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